Correlation Between Dodge Cox and Scharf Fund
Can any of the company-specific risk be diversified away by investing in both Dodge Cox and Scharf Fund at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Dodge Cox and Scharf Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dodge International Stock and Scharf Fund Retail, you can compare the effects of market volatilities on Dodge Cox and Scharf Fund and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Dodge Cox with a short position of Scharf Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dodge Cox and Scharf Fund.
Diversification Opportunities for Dodge Cox and Scharf Fund
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dodge and Scharf is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Dodge International Stock and Scharf Fund Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scharf Fund Retail and Dodge Cox is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Dodge International Stock are associated (or correlated) with Scharf Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scharf Fund Retail has no effect on the direction of Dodge Cox i.e., Dodge Cox and Scharf Fund go up and down completely randomly.
Pair Corralation between Dodge Cox and Scharf Fund
Assuming the 90 days horizon Dodge International Stock is expected to under-perform the Scharf Fund. In addition to that, Dodge Cox is 1.03 times more volatile than Scharf Fund Retail. It trades about -0.26 of its total potential returns per unit of risk. Scharf Fund Retail is currently generating about 0.26 per unit of volatility. If you would invest 5,518 in Scharf Fund Retail on August 29, 2024 and sell it today you would earn a total of 227.00 from holding Scharf Fund Retail or generate 4.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dodge International Stock vs. Scharf Fund Retail
Performance |
| Timeline |
| Dodge International Stock |
| Scharf Fund Retail |
Dodge Cox and Scharf Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dodge Cox and Scharf Fund
The main advantage of trading using opposite Dodge Cox and Scharf Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dodge Cox position performs unexpectedly, Scharf Fund can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Scharf Fund will offset losses from the drop in Scharf Fund's long position.| Dodge Cox vs. Dodge Stock Fund | Dodge Cox vs. Dodge Income Fund | Dodge Cox vs. Dodge Balanced Fund | Dodge Cox vs. The Fairholme Fund |
| Scharf Fund vs. Scharf Global Opportunity | Scharf Fund vs. Scharf Balanced Opportunity | Scharf Fund vs. Scharf Balanced Opportunity | Scharf Fund vs. Eventide Gilead Fund |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |